1. The "Leave Room for Negotiation" Approach Setting the price slightly above market value (e.g., $305,000 for a home valued at $300,000) gives room to negotiate. However, this risks deterring buyers, making comparable homes more attractive. 2. The "Price It to Market" Approach Pricing the home at or near market value (e.g., $295,000) ensures it competes favorably with similar listings. Buyers see it as fairly priced and may act quickly. 3. The "Underpricing to Generate Interest" Approach Listing below market value (e.g., $280,000) might spark a bidding war, but this strategy risks leaving money on the table if bids don’t reach your desired price.
The Comparative Market Analysis (CMA) s (CMA)
A Comparative Market Analysis (CMA) is an essential tool for determining a competitive listing price. Real estate professionals use CMAs to evaluate your home against recently sold properties with similar features in your area. Reviewing a CMA helps you: • Identify a realistic price range. • Minimize the risk of underpricing or overpricing. • Increase the likelihood of appraising at the agreed sale price. If priced well, your home should attract interest within days and receive offers within weeks.
Perceived Value vs. Actual Price
Buyers are driven by perceived value. If your home appears to offer more than its asking price suggests, buyers will be eager to act. Conversely, if the price aligns too closely with perceived
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